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Biofuels 'will keep oil at minimum $60'
OIL prices will not fall below $60 to $70 a barrel as this is the minimum level at which alternative fuels are economically viable, Saudi oil minister Ali al-Naimi said at the weekend.
Naimi said in an interview with Petrostrategies magazine: "From now, there's a line below which prices won't fall."
He said "the marginal cost of production of alternative fuels, whether that's biofuels or tar sands" had a threshold at those price levels.
"If you take into account all the subsidies involved in the production of a barrel of biofuels, I doubt whether anyone could make money from that with a price lower than $60 or $70," he was reported as saying.
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Weather for Edinburgh
Thursday 24 May 2012
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Temperature: 10 C to 23 C
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